Lord Jackson of Peterborough
Main Page: Lord Jackson of Peterborough (Conservative - Life peer)Housing Supply
Lord Jackson of Peterborough Excerpts
Mr Andy Slaughter (Hammersmith) (Lab)
It is a pleasure to follow the hon. Member for St Ives (Andrew George). I echo what he said about the bedroom tax, not only because of its effect on those it directly affects, but because of the attitude that it shows to the 8 million people in this country who live in social housing, which is that they are effectively second-class citizens so far as the Government are concerned. I am sorry that so many of his colleagues voted for the bedroom tax, although he did not, which is entirely to his credit.
The hon. Gentleman’s constituency is very different from mine, and I hope he will not mind if I move the subject on to London, where housing problems are writ large and are intensifying. We see that in every indication, from the gap between housing demand and supply—the gap in London is some 30% of the gap in England as a whole—to rough sleeping, which has gone up 75% in London over the past three years; that is more than twice the increase in the rest of the country. It is tempting to say that the problems are too difficult to solve, and that house building should therefore take place in areas where land values are cheaper. I am well aware of that, because the median rent for a three-bedroom property in my constituency is £550 a week, which is more than the average London wage. The average purchase price for any property is approaching £750,000, which is completely unaffordable even for those on several times the average income.
We have to address those problems, including in central London, because Government policy—and certain local policies, too—has intensified them. Local housing allowance for three-bedroom properties has been capped at £340. That is supposed to cover the bottom third of rents, but the valuation office’s up-to-date figures tell us that the lower quartile of rents in Hammersmith for a three-bedroom property is £459. The net effect of the change, and indeed of all the other changes the Government have made to benefits policy, is that it is almost impossible to find any property in the private sector that would be covered by housing benefit. We have therefore had an exodus—a process of social cleansing—that has forced people who, in many cases, have lived in London for generations out of the city, and away from where their homes, schools, jobs and families are.
That was intensified by a deliberate policy. I am grateful to my hon. Friend the Member for Wolverhampton North East (Emma Reynolds) for mentioning what happened at the local election in Hammersmith, which was a breath of fresh air to almost everyone who lives in the area. There was a deliberate demolition of council properties. Whole blocks of 200 or 300 good-quality council properties were held empty for six or seven years before being demolished to be handed to the private sector. Council properties were sold off as they became empty. Over the past four or five years, 500 homes have been sold that could have been used by families on the waiting list, had the waiting list not also been abolished.
I cannot understand the mentality of the Government or local councils, who want to exacerbate an already serious housing problem. I am therefore delighted that a Labour council came in, and the first thing it did on the day after the election was to cancel the demolitions and the sales. The first thing the council did at the first cabinet meeting was to say, “From now onwards we will again prioritise social rented housing, which for eight years has been excluded from the types of housing that could be constructed.”
I want to be a bit more optimistic, and talk about how we can achieve decent affordable housing in high-value areas. Our local plan envisages 50,000 new properties being built over a 20-year period. That is perhaps slightly over-ambitious, if anything, and somewhat unwise, in the sense that it means demolishing hospitals to build housing on their sites. I think that is somewhat short-sighted.
There are three opportunity areas in Hammersmith and Fulham. One is on the site that will be used for High Speed 2; it is envisaged that 24,000 new homes will be built there. The second is in White City, on the site vacated by the BBC, where it is envisaged that 6,000 properties will be built. The third is in the Earls Court and West Kensington area, where it is envisaged that 8,000 properties will be built. The problem is that under existing policies, not a single one of those almost 40,000 properties will be a social rented home. Clearly that will change with the planning policy, but many planning consents have already been given.
I draw attention to two facts. First, across London, and probably outside London, too, developers are relying on viability assessments, which are confidential documents that are not disclosed to the public, or even to councillors on most occasions. Developers typically say that they can afford to build 5% or 10% affordable housing at 80% market sale or 80% market rent. Every time that has been challenged and taken to the Information Commissioner, the documents have eventually been revealed. In the case of Earls Court, for example, we had to go to not only the Information Commissioner but the first-tier tribunal. It was only at that point that the local authorities gave in. Guess what? The viability assessments did not support the idea that there should be little or no affordable housing in those developments.
Secondly, much of these developments are on public land in the widest sense. If they are not on council-owned land or Government-owned land, they are on land owned by the BBC, Network Rail or Transport for London. If we cannot build decent affordable housing on publicly owned land, we are saying to developers, “In those cases, you can also get away with building 95% market housing.” In inner London, that means that properties are for sale abroad, off-plan. Most properties currently being built in my constituency are advertised on websites in the far east, Russia and elsewhere. One-bedroom and two-bedroom properties begin at £1 million-plus. Those properties are not affordable to anyone, by any means, which is why there is effectively a coalition between those who need social rented homes and those who could afford quite a lot on the private market. All my constituents say to me, “When will the Government act to ensure that houses are built that are affordable for the people who live and pay taxes in this country?”
Mr Stewart Jackson (Peterborough) (Con)
If I am following the hon. Gentleman’s logic correctly, he is arguing for scrapping the ability of developers to vary section 106 agreements on the basis of a project’s financial viability. Is that the Labour party’s policy? Does he not understand that that may well reduce the overall supply of affordable housing?
Mr Slaughter
I am asking for the viability assessments to become transparent, open documents, so that everyone can see where the truth lies. I am also asking for Conservative local authorities to stop colluding with developers to drive out affordable housing for their own political, economic and ideological motives. That is what is happening across London, and I am sure outside London, too. I support exactly what Michael Lyons said yesterday at the LGA conference, which is that if local authorities are going to act in that way, there has to be an impetus to build more social housing, and that has to be in addition to any revival in the private housing market.
I agree with my hon. Friend the Member for Wolverhampton North East that we do not want to change things back to exactly how they were, but the four principles that the Government have relied on need to be reversed. They have cut capital investment in housing, reduced security of tenure and almost eliminated affordability, certainly in London, and now they are refusing to determine on the basis of need how housing should be allocated. That is more than a generational step back. Frankly, those are not housing policies that any Government should support. I hope that when my hon. Friend is Housing Minister, she will reverse them.
Jeremy Corbyn (Islington North) (Lab)
I am pleased that we are having yet another debate on housing, and I hope there will be many more between now and the next election.
There is clearly a housing crisis facing very many people in this country. Basically, the problem is that 200,000 new households are being created every year through population growth or people choosing to live alone. New house building comes nowhere near to meeting those demands. Thus the shortage is dealt with by rising property prices, rising private sector rents and greater demand on social housing—or, at the other end of the scale, increasing homelessness, rough sleeping, overcrowding, underachievement in schools, and desperate poverty among many people who deserve somewhere decent to live.
I hope that we can look at this debate on the basis of the needs of the entire population. I am particularly concerned about those who are really up against it in inner-city communities such as the one I represent. I am very proud to represent an inner-London constituency. It is a place of growing division, I am sorry to say, because of the housing situation. House prices are rising very fast. The number of owner-occupiers is now well below 30% and falling fast. The number of council properties is increasing only as far as the council is able to find land to build and develop council housing, which is the most secure and affordable form of housing available to people. The remaining provision comprises the private rented sector, which has limited regulation and tends to be very expensive.
The strategy adopted by this Government, through the Department for Work and Pensions, on limiting the local housing allowance but not controlling rents means that large numbers of private tenants, who are often in work—as well as some who are not in work but have right of access to the local housing allowance—cannot afford to remain in those properties and are therefore decanted out of the area. That is happening not just in central London but in the central and more expensive parts of every town and city in the country. Frankly, there is a process of social cleansing going on. That is the effect of the overall housing shortage and the very great increases in costs associated with it.
I have raised with the Minister a specific concern about the development of new properties in former industrial or office buildings under what are known as permitted development rights. The Government decided that they would lift the planning restriction applied to permitted development rights on former office buildings. That means that a local authority has no control over what happens to a former office building, which can then be converted into housing. In some cases, it might be entirely appropriate to convert an office block into housing if there is no longer any requirement for an office block or likelihood of anybody wanting to use it as such. The problem is that if the local authority has no say in the matter, it has no opportunity to try to protect local employment, as it might sometimes wish to protect. Moreover, the local authority has no power whatever to insist that a proportion of the dwellings created are available for social rent. I do not like using the phrase “affordable rent,” because most of the “affordable” rents in London are not at all affordable to anyone on an average income or below.
Yesterday, the all-party group on the private rented sector had a very interesting meeting about access to housing for under-35s. We took evidence from Crisis, the National Union of Students and a company called Essential Living, which is backed by $200 million of equity funding from American pension funds and is very keen on developing the larger-scale private rented sector in London. It says that at some point in the future it wants to develop some kind of affordable rented model, but it is very unclear what that model is. It has bought into an office block in my constituency called Archway tower and turned it into, I think, 120 flats marketed at people earning more than £80,000 a year. It does not require local authority permission to do that; it is only building control and any external work to the building that need to be passed by the local planning authority. Requests have been made of the company to contribute to the social needs of the area by providing a proportion of those properties for social rent. Its responses have been polite and well informed, but the answer has always been the same: it says no, it will not do it.
When I say to the Minister, therefore, that there is a need to intervene in the development of the private rented sector, I do so not only because I want to see the continuation of the diverse mosaic of London’s communities, but, quite simply, for the sake of the survival of the economy of this very big city, which, indeed, will affect that of other very big cities. I pray in aid the London chamber of commerce statistics on the numbers of people who are finding it difficult to afford to buy or rent anywhere to live in London. There is a growing problem of labour shortage, and the same applies to other parts of the country.
Mr Stewart Jackson
I am rather puzzled by the hon. Gentleman’s comments about his constituency. Given the paucity of greenfield and urban exception sites available to build new estates in boroughs such as Islington, I would have thought that he would welcome permitted development rights, to enable the cumulative release of more housing of all types and perhaps even affordable housing for his constituents and people across London.
Jeremy Corbyn
Uncharacteristically, the hon. Gentleman does not seem to have been listening very carefully. I did not say that I was opposed to the conversion of vacant office blocks or industrial premises into housing. My point is that if there are jobs to be protected—this could apply anywhere in the country—the local authority should at least have a say, so that a rational decision could be made. Secondly, any development has to have a sense of social responsibility, so at least a proportion of those properties should be available for affordable social rent rather than market rent, which is completely unaffordable for the majority of people in my constituency.
When the Minister replies to the debate, I hope he will reflect on the ways in which permitted development rights are actually militating against the housing needs of those people who are most desperately in need of somewhere safe, secure and affordable to live.
Mr Buckland
The hon. Lady is talking about 1968—the year of my birth. I agree that house building reached its peak at that time, but I also remind her that in the immediate post-war era, between 1945 and 1951, about 700,000 houses were built, which is only just over 100,000 a year, and that Aneurin Bevan’s record on housing does not match that of Harold Macmillan.
It is important to make such points, historic though they may be, because neither of the main parties in this House can claim a moral authority when it comes to house building. It ill behoves the hon. Lady and her party to make intemperate criticism of this Government when the previous Labour Government’s public house-building record speaks for itself as poor. The year 2008-09 saw the lowest level of house building since, I think, 1923, which is hardly a record of which the Labour party can be proud. If Labour’s record was so poor then, why on earth should we believe its pledges now about house building from 2015? Please forgive me, but, to be frank, I am sceptical of those claims, though I am sure they are well-intentioned.
Swindon is a town that continues to grow—it now has in excess of 200,000 people—and we have delivered house growth for much of the past 30 to 40 years: first, in the form of the London overspill estates, such as Park North and Park South, and then through developments in the ’70s and, indeed, the ’80s in west Swindon, which comprise the constituency that I have the honour of representing today.
We are no strangers to, or shy of, house building, and we continue to do it. The Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Grantham and Stamford (Nick Boles), who has responsibility for planning, is familiar with the Wichelstowe development in my constituency. It is one of the biggest developments in the country and it continues to be rolled out. I am very grateful to my hon. Friend and the Government for contributing £800,000—nearly £1 million—to allow a joint venture to be set up, which will enable the local authority, Swindon borough council, together with a private partner, to start developing homes specifically geared towards retired people who wish to downsize and live in homes that, while they do not meet the criteria of sheltered housing, are designed with the needs of older people in mind.
I am talking about homes with fewer bedrooms but larger living accommodation and that are adaptable for the disabilities that sometimes come with old age. That detailed work has been commissioned by the local authority. It has identified a growing ageing population in Swindon who will need that type of housing, and I look forward to the joint venture being set up in the early part of next year and to houses being delivered in Middle Wichel. A new Waitrose supermarket has been opened on the site, which is welcome. We already have shops and infrastructure, which I hope will match the housing to be built there. I am delighted that this week’s announcement of local growth funding has earmarked more than £20 million for the development of infrastructure to facilitate the development of Wichelstowe, which will include the enhancement of junctions 15 and 16 of the M4. That is vital if Swindon is going to be able to sustain the housing expansion expected of it.
In recent years, planning and development have not had the best of reputations. Accusations have been made that developers have land-banked. Until a few years ago, I think there was a case to be made, but the evidence is shifting. My recent experience of the granting of local planning applications is that developers are, in fact, keen to get on site and start developing. I am no longer as convinced as I was about the accusations of land-banking. I have read the detail of the Opposition motion and think that they are a little behind the curve when it comes to the real evidence. They are quite right to be concerned about land-banking—I do not approve of it at all—but I think the evidence is moving against them as the economy picks up and construction development continues.
Mr Stewart Jackson
My hon. Friend makes a good point about land banking. Is there not a huge difference between using the fiscal system to encourage developers not to bank land, and the Opposition proposal to appropriate land in an arbitrary way?
Mr Buckland
That leads on to my point. I have concerns about proposals that address non-existent problems. The Opposition proposal could make the situation worse—poorly prepared and considered developments could go ahead, but that is not what we want, and certainly not in Swindon.
Development problems concern not only those of us with an interest in housing, but everybody who wants quality of life. I deal regularly with what I call speculative planning applications, which fall outside the line of development as agreed by local plans and do not capture the consent of local people. Although I was delighted that the old top-down regional spatial strategy was abolished—the number of houses being imposed on my area was excessive—we are in a transitional period between the abolition of the old regime and the adoption of a new local plan. There has been an over-reliance on the five-year land supply argument. That causes a problem for growing towns such as Swindon—it is very difficult to argue that we have such a supply.
My hon. Friend the Minister is well aware of those problems, but the message on development and new homes must go out loud and clear. In Swindon alone, 238 new homes have been purchased through Help to Buy, and under the affordable homes scheme, just under 1,000 homes have been delivered. Real progress is being made. The Government are sowing the seeds of a renaissance in housing development. The proposals in the Opposition motion are ill-conceived and do not address the issues properly, and they would cause more problems than they seek to solve.